Kent Reliance offering larger buy-to-let mortgages with its five-year fixes

by Aaron Strutt

Jul 20 2016

Kent for Reliance for Intermediaries is offering larger buy-to-let mortgages to landlords opting for longer-term rates.

If applicants lock into a five-year fix, the specialist lender will provide a more attractive rental calculation using the pay rate, rather than a higher notional rate.

Kent Reliance’s lowest five-year fix is priced at 4.19% and it has a 1.5% arrangement fee.  Applicants will require a 25% deposit to qualify, and early repayment charges apply for five-years. After the fixed rate, the mortgage will revert to the lender's 6.08% standard variable rate.

Larger buy-to-let mortgages

Kent Reliance offers its most generous buy-to-let mortgages to experienced landlords with a portfolio of properties. If the client has less than three flats or houses, the 130 at the pay rate calculation applies, this reduces to 125% at the pay rate with more than three properties.

Aaron Strutt, product director at Trinity Financial, says: “If a property generates £1,750 rent each month, the client has three properties and opts for a five-year fix, the calculation of 125% at 4.19% applies. It enables landlords to borrow just over £400,000.  With a two-year fix, the minimum mortgage would be approximately £336,000.

“Over the last few months, buy-to-let lenders have been tightening rental calculations and lowering the mortgage loan sizes. If you applied for a mortgage through Virgin Money, the calculation would be based at 125 of 5.99% and the maximum loan size would be £280,467.”

Coventry Building Society recently tightened its rental calculation to 140% at 5 for mortgages below 65% loan-to-value. It improves to 140% at 5 with a five-year fix. Click here to view a buy-to-let mortgage calculator.

Specialist lending

Kent Reliance accepts a whole range of specialist cases from clients with complex incomes, limited companies, large property portfolios and larger mortgage requirements - typically up to £3 million.

For help to secure a larger buy-to-let mortgage, call Trinity Financial on 020 7016 0790.